The first product I expect from General Chrysler
The Chrysler Group and General Motors are holding discussions about a joint project that would provide Chrysler with a version of the big Chevrolet Tahoe sport utility, people with direct knowledge of the talks said Thursday night.
Under the most likely situation, G.M. would produce a big S.U.V. for Chrysler to sell in the United States and other markets.
S.U.V. sales peaked in 2002, but have fallen since then, especially after gasoline prices spiked above $3 a gallon in 2005 and 2006. The drop in S.U.V. sales was one reason G.M. lost $10.6 billion in 2005, prompting the company to initiate its own revamping efforts.
“It’s ironic that both of them are in financial trouble because they’re too dependent on big vehicles, and now they’re talking about doing a big vehicle together,” said Kevin Smith, editorial director of Edmunds.com, a Web site that offers car-buying advice.
I’m so nonplussed it’s hard to come up with a polite comment. True, the American business model almost requires ignoring trends beyond the next 2 quarters. These clowns are ignoring the last three or four years.
I guess Ford will bring back the Edsel, next.
Let me get this straight. GM – a sinking ship that can’t figure out how to make a profit – wants to buy the only part of Daimler Chrysler that doesn’t make a profit. This is a good idea because… ? I expect to hear news of the Ford-GM-Chrysler merger next – they would set records as the most inefficient, money-wasting, debt-ridden organization since the formation of the US federal government.
If we could just convince Iran or N. Korea to make Detroit their first target, all will be well.
There’s also the rumour that Renault and Nissan want to make an alliance with Chrysler. How do you like that?
Didn’t an over-emphasis on large SUVs lead to the current woes of the U.S. auto industry? What good could possibly come from collaboration between G.M. and Chrysler on a large SUV? I’m starting to believe the U.S. auto industry is purposely trying to bankrupt itself. This way it can divest itself of current union contracts and pension plans like the major airlines and steel industry have done. They would come out of bankruptcy organization without their stifling legacy costs, better able to deal with the lower cost structure of their foreign rivals.
#2,
If they were to do that, and put the Nissan engines in some of those Renault cars, I think they would have a hit. The Nissian body designs have seemed… static the last few years. But that Nissian V6, hubba hubba, put that engine in just about any car, and you have a whole new thing.
WTF?!? The Tahoe is NOT a “large” vehicle.
I’m just curious, when they say that Toyota is gaining market share, passing Chrysler and ford, coming up on GM, with all the many makes these (formally) “Big Three” have, does Toyota include Lexus and Scion? are they any other that fall in the “Toyota” bucket?
6-
No, they are including just the Toyota nameplate from what I understand.
Either way, even if they do, it’s a fraction of the nameplates that GM offers: GMC, Chevrolet, Saturn, Pontiac, Cadillac, etc.
The domestics continue to ignore the market forces at work, and continue to pump out gas guzzling vehicles.
I am waiting for the federal government to step in like they did with the airlines and bail them out – leaving us footing the bill.
#7 It’s not just Gas guzzlers that are the problem. It’s also the quality of the product. As soon as Toyota makes a truck that can compete with the American Trucks you see the Big three take a big nose dive. Currently the Toyota Truck can’t carry the load of a domestic Truck. It don’t have the framing or suspension to support fifth wheel or truck bed ball hitches.
#3 – That may not be the worst idea I’ve ever heard. These companies are SO burdened by trying to pay former employees with money they didn’t have because of promises they made based on future profits that didn’t arrive along with outrageously overpaid union workers that can’t be laid off.
It’s been unsustainable for a while, and it’s all about to come crashing down.
#8 — you’re not hanging out here enough. Some of these are starting to show up in my neighborhood already — and Toyota had a couple of reasonably macho commercials for them during Super Bowl.
The original link doesn’t work any longer; but, the autoblog link down below does.
The new Tundra by Toyota will be the nail in the coffin of both GM and Ford. The only thing either of these companies have going for them financially are their truck divisions – and the new Tundra is all around a better truck.
Good riddance to all the domestic automakers – they’re all crap.
10. The Tundra will kick butt in the truck market, but I also expect the FJ Cruiser to put a huge dent in the SUV/Hummer market too.
Toyota is doing well because they’re learning American tastes. Simply put there are plenty of Americans who will never buy a Honda because they’re as boring looking as shit. Americans love big scary looking cars and trucks. Toyota gets that. And GM should be scared.
I just wanted to add, if GM does buy Chrysler, it should keep the Jeep division and dump everything else.
Chrysler would be smart to go with the proposed new plan of integrating more mercedes tech into their vehicles and offering more intermediate-size models at every price level with improved milage and performance. Not every one wants an Escalade with a wet bar in the back seat (although I’d rent one now and then, a good use for such toys).
Likely scenario: Somebody, anybody buys out the big three, they close all the plants, let the folks feel the pain, then open them all back up, but minus unions and retirement plans. MoTown will sing to a different tune, no doubt.
Here’s my formula for saving any American car company:
Focus on one affordable “practical” model and don’t try to hit a home run.
Just re-engineer it a little better every year until the darn thing can go 200K without a hitch.
OK — I’m talking about the Toyota Camry.
But if Toyota can do it, why not GM?
The original Camry’s were no great car, where they? But Toyota just incrementally made them better and better. My mothers has gone something like 100K with literally NOTHING going wrong.
(OK, she wore out the brake pads — but that’s not Toyota’s fault — my mother is senior citizen! 😉 )
14. “Somebody, anybody buys out the big three, they close all the plants, let the folks feel the pain, then open them all back up, but minus unions and retirement plans”
That’s exactly what’s already happening. A little while ago Ford cut its best selling car the Taurus and closed the factory. Now Ford’s best selling mid-sized sedan is the Fusion. And guess what, it’s made in Mexico.
I am in the market for a new car. I went to the Philly Auto show excited about the Dodge Charger or a Jeep and walked out talking about Toyota and Nissan. They’re just better cars! Just go sit in Camry or Avalon – the seats are like pillows. Sit in the Dodges or Fords and the seats are like rocks. American carmakers have forgotten how to make great cars for the masses (I’m excluding the luxury market)